Different businesses work under different circumstances, and when considering the choice of corporate form for your Swedish venture the following factors are important to consider:

The first thing you will need to determine is if your Swedish enterprise can be regarded as a permanent establishment by the Swedish authorities. Handling your Swedish business through a non-permanently established representation office or agent can significantly reduce your Swedish tax burden, but a misjudgment regarding your tax status can cause unanticipated costs and tax penalties. You must also keep in mind that even non-permanently established companies often need to register with Swedish authorities and pay tax on their Swedish income.

Without permanent establishment in Sweden, your business will most likely take the form of a representation office.

We can help you determine if your Swedish venture will constitute a permanent establishment, and assist you in the necessary registrations. Through our umbrella employment services we can also offer alternative ways of providing services on the Swedish market.

If your business in Sweden is to be organized as a permanent establishment you have a whole range of alternatives when it comes to choosing an appropriate company form. The most popular options are to either register a Swedish branch of your pre-existing company abroad, or to register a separate Swedish limited liability. The Swedish legislation does also allow for several different types of partnerships and individuals also have the option of registering as a sole trader.

The most common permanently estblished corporate forms are:

• Company Branch
• Limited liability company (called an “aktiebolag” or “AB” in Swedish)

Regardless of what type of company you are interested in KagNag can provide you with advice, help you through the necessary registrations and assist you in ensuring full compliance with the Swedish legislation.

All companies that have employees in Sweden are required to register with the Swedish Tax Authority. Registration may also apply to companies with employees that are paying their social taxes to Sweden through a reciprocal tax treaty between Sweden and the nation in which they are working.

We can help your company register with the Swedish Tax Authority. We can also provide you with advice regarding the Swedish labor legislation, which in part, are applicable to legal entities registered both in Sweden and abroad.

To enroll a new employee in Sweden through one of our umbrella employment or payroll administration solutions, KagNag requires approximately one to three business days.